TPG RE Finance Trust Outperforms Active Power in Key Metrics

In a recent analysis, TPG RE Finance Trust (NYSE: TRTX) demonstrated a stronger financial position than Active Power (OTCMKTS: PIOE). The comparison focused on various factors, including profitability, institutional ownership, and analyst recommendations. This evaluation highlights TPG RE Finance Trust’s advantages in revenue and earnings, positioning it as a more favorable investment choice.

Analyst Ratings and Market Sentiment

According to data from MarketBeat, TPG RE Finance Trust holds a consensus target price of $9.50, indicating a potential downside of just 0.05%. Analysts provided TPG RE Finance Trust with a rating score of 3.33, reflecting a more positive outlook compared to Active Power, which received no ratings. This disparity suggests that market analysts favor TPG RE Finance Trust as the superior investment option.

Financial Performance and Valuation

A comparison of revenue and earnings reveals that TPG RE Finance Trust significantly outperforms Active Power. For the last fiscal year, TPG RE Finance Trust reported gross revenue of $153.12 million with earnings per share (EPS) of $0.65 and a price-to-earnings ratio of 14.62. In contrast, Active Power has not disclosed revenue figures, indicating it may be facing challenges in generating income.

Profitability metrics further illustrate TPG RE Finance Trust’s strength. The company achieved net margins of 21.09%, a return on equity of 6.61%, and a return on assets of 1.89%. These figures highlight its efficiency and effective management, especially when compared to Active Power, which lacks available data in these categories.

Institutional investment plays a critical role in evaluating a company’s market confidence. Approximately 57.1% of TPG RE Finance Trust shares are held by institutional investors, contrasting sharply with 20.0% of Active Power shares held by insiders. This suggests that large financial institutions are more confident in TPG RE Finance Trust’s long-term growth prospects.

In summary, TPG RE Finance Trust surpasses Active Power in nine out of ten evaluated factors, including revenue, profitability, and institutional ownership. This indicates a more robust business model and greater potential for investors.

Company Profiles

Active Power is part of P10 Holdings, Inc., an alternative asset management firm founded by Joseph F. Pinkerton in 1992. The firm focuses on creating long-term value through private equity funds, emphasizing sustainable profit growth. Headquartered in Dallas, Texas, Active Power aims to provide risk-adjusted returns through various investment strategies.

On the other hand, TPG RE Finance Trust, established in 2014, operates as a commercial real estate finance company based in New York, New York. The company specializes in originating and managing commercial mortgage loans and other debt instruments, primarily in sectors such as multifamily, life sciences, and retail. Qualifying as a real estate investment trust, TPG RE Finance Trust aims to distribute at least 90% of its taxable income to shareholders, thereby minimizing federal corporate income tax liabilities.

As the financial landscape continues to evolve, TPG RE Finance Trust’s solid performance metrics and institutional backing position it favorably against Active Power, which faces challenges in transparency and profitability.